Executive Summary
Marwynn Holdings’ QQ2 2024 results show a mixed fundamentals picture amid a challenging macro and operating environment for a diversified Consumer Defensive player. Revenue for the quarter was $2.84 million, up about 9% year-over-year but down 15.6% from the prior quarter, reflecting ongoing seasonality and mix shifts. Gross margin remained solid at approximately 49.2%, signaling pricing power or favorable product mix, but operating losses persisted with an operating income of -$0.230 million and net income of -$0.329 million, driven by elevated SG&A and other operating costs. EBITDA was positive at $0.112 million, underscoring some underlying cash-generation capability, yet overall free cash flow remained deeply negative at -$0.992 million, and CFO was -$0.987 million for the quarter. The balance sheet shows a moderate liquidity cushion with a current ratio of 1.21 but a cash ratio near 0.05, and a heavy debt load with a debt-to-equity ratio of 2.18 and total debt to capitalization of 0.686. The company’s key leverage and cash-flow metrics suggest meaningful near-term refinancing and cost-structure challenges, even as gross margins provide a potential runway for improvement. Management commentary from an earnings transcript is not available in the provided dataset, limiting direct insights into forward-looking guidance; inferences are therefore anchored in reported results and sector dynamics. Investors should monitor cash burn, working-capital efficiency (notably inventory days outstanding around 279 days and a substantial working-capital drain), and any signs of operating-cost optimization or strategic pivots in subsidiaries.
Key Performance Indicators
QoQ: -148.56% | YoY:-160.60%
QoQ: -194.34% | YoY:-212.73%
Key Insights
Revenue: $2,842,608 in QQ2 2024, up 9.06% YoY and down -15.56% QoQ. Gross Profit: $1,398,055; Gross Margin: 49.18%. EBITDA: $111,904; EBITDA Margin: 3.94%. Operating Income: -$229,836; Operating Margin: -8.08%. Net Income: -$328,531; Net Margin: -11.56%. EPS (diluted): -$0.0193. Weighted Avg Shares: 17,004,004. Cashflow: Net cash from operating activities -$986,609; Free cash flow -$991,609. Cash at end of period: $301,702. Liquidity: Current ratio 1.212; Quick ratio 0.452; Cash ratio 0.0512. Le...
Financial Highlights
Revenue: $2,842,608 in QQ2 2024, up 9.06% YoY and down -15.56% QoQ. Gross Profit: $1,398,055; Gross Margin: 49.18%. EBITDA: $111,904; EBITDA Margin: 3.94%. Operating Income: -$229,836; Operating Margin: -8.08%. Net Income: -$328,531; Net Margin: -11.56%. EPS (diluted): -$0.0193. Weighted Avg Shares: 17,004,004. Cashflow: Net cash from operating activities -$986,609; Free cash flow -$991,609. Cash at end of period: $301,702. Liquidity: Current ratio 1.212; Quick ratio 0.452; Cash ratio 0.0512. Leverage: Debt ratio 0.445; Debt-to-equity 2.18; Total debt-to-capitalization 0.686. Interest coverage (EBIT): -16.7x; using EBITDA-based perspective, coverage is positive. Revenue growth drivers are not explicitly disclosed; strong gross margin suggests potential for margin improvement if operating costs are managed. Valuation signals: Price-to-sales 25.72x; Price-to-book 29.33x; EV/EBITDA 699.37x, indicating a likely premium attributed to the small-cap, diversified niche and/or the pre-revenue expectations rather than cash-flow-rich earnings.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.84M |
9.06% |
-15.56% |
| Gross Profit |
1.40M |
14.85% |
-9.74% |
| Operating Income |
-229.84K |
-160.60% |
-148.56% |
| Net Income |
-328.53K |
-212.73% |
-194.34% |
| EPS |
-0.02 |
-212.87% |
N/A |
Key Financial Ratios
operatingProfitMargin
-8.09%
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.06
priceEarningsRatio
-55.64
Management Commentary
Transcript availability: Not provided in the dataset. As a result, key management themes, strategic pivots, and qualitative updates from the earnings call could not be incorporated directly. The analysis relies on reported financial results and ratio-metric interpretation. Investors should seek an official transcript or investor presentation for quotes and forward-looking guidance.
Transcript not available.
— N/A
Transcript not available.
— N/A
Forward Guidance
No formal management guidance is present in the provided data. Given the current quarter’s profitability pressures and balance-sheet levers, potential guidance to watch would include: (1) planned SG&A optimization and cost-reduction initiatives to improve operating margins; (2) working-capital management efforts to reduce inventory days and convert receivables more quickly; (3) debt-reduction or refinancing plans to address interest-coverage headwinds and liquidity risk; (4) any strategic milestones tied to the subsidiary portfolio (FuAn Enterprise Inc and Grand Forest Cabinetry Inc) that could unlock revenue synergies or cost-sharing. In the absence of explicit guidance, investors should assess sequential margins, cash-burn trajectory, and any announced capital-allocation priorities in the upcoming filings or presentations. Based on sector dynamics, a favorable outcome would require meaningful step-change in Opex leverage and better inventory and receivables management to drive free cash flow toward positive territory.